Question: Using the following information to answer the next two questions Return for FastRunner company Return for Issuing Company Year 1 14.00% 11.00% Year 2 9.55%
Using the following information to answer the next two questions
|
| Return for FastRunner company | Return for Issuing Company |
| Year 1 | 14.00% | 11.00% |
| Year 2 | 9.55% | 4.50% |
| Year 3 | -6.50% | -8.28% |
| Year 4 | 10.20% | 2.15% |
| Mean |
|
|
| Standard Deviation |
|
|
What is the maximum loss (Mean - 1.2816?) for stock of Issuing at the 90% c.f.?
|
| -6.5478% |
|
| 6.5478% |
|
| -7.7136% |
|
| 11.8985% |
What is the maximum loss (Mean - 2.3262?) for stock of FastRunner at the 99% c.f.?
|
| -11.4985% |
|
| 11.4985% |
|
| 10.2507% |
|
| -10.2507%* |
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
